Income Approach to GDP

Question 1

What is the income approach?

Answer 1

Demonstrates how the expenditures on final products are allocated to resource suppliers income

Question 2

What is considered in the income approach? (6) (CRIP CT)

Answer 2

C - compensation of employees
R - rents
I - interest
P- proprietors’ income

C - corporate profits
T - taxes on production

Question 3

What is the sum of what is considered in the income approach?

Answer 3

The national income